OIL, AGCL to form joint-venture for piped natural gas distribution

Assam Gas Limited (AGCL) and Oil India Limited (OIL) on Saturday signed an agreement to set up a joint venture company to extend, build and operate the city’s natural gas distribution networks in parts of Assam and Tripura.

An official statement stated that the agreement was signed between the two sides in a ceremony held here in the presence of Assam Chief Minister Himanta Biswa Sarma.

Assam government-owned AGCL will hold a 51 per cent stake, while the remaining 49 per cent stake will be held by the international oil company in the joint venture company.

It will construct domestic natural gas networks and supply natural gas through pipelines to domestic and commercial enterprises in Lakhimpur, Dehmaji, Darang, Udalguri, Sonetpur and Bezwanath Chariali in Assam, and a few districts of Tripura.

The statement said the company will also set up several compressed natural gas stations.

Speaking at the event, Sarma said that the signing of the agreement between AGCL and OIL will provide a major impetus to the ongoing process of industrial development in the state.

He added that the joint venture company, with an authorized capital of Rs. 500 crore and an initial paid-up capital of Rs. 100 crore, will be a milestone in strengthening the state’s economy.

The Prime Minister also expressed his hope that the joint venture company would assist in the country’s endeavor to transition towards a green fuel-based economy, in conjunction with the Northeast Hydrocarbon Vision 2030.

He commended the Oil Department for reinvesting part of its profits in Assam and other parts of the North East through initiatives such as the agreement signed today.

(Only the title and image for this report may have been reworked by the Business Standard staff; the rest of the content is generated automatically from a shared feed.)

First published: April 29, 2023 | 11:06 p.m ist